What Financial Cost of the Disclosure of NSA Data Collection Systems?

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By Douglas A. McIntyre Updated Published
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The disclosure that the U.S. government tracks phone call patterns and a broad spectrum of data from large consumer-facing tech companies, which probably include Facebook Inc. (NASDAQ: FB), Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO), may cost a huge amount of money to retool so the methods used are not as obvious as they have become because of the disclosures.

The government has stated that the system looks at such a huge volume of data that individual privacy rights are not compromised. But disclosure of the system detail itself my let those who it intends to track more wary about how they communicate. It may give them a working road map to avoid detection, at least by the program as it is constituted now.

The Wall Street Journal says of the NSA data dragnet:

The NSA’s advances have come in the form of programs developed on the West Coast — a central one was known by the quirky name Hadoop — that enable intelligence agencies to cheaply amplify computing power, U.S. and industry officials said. The new capabilities allowed officials to shift from being overwhelmed by data to being able to make sense of large chunks of it to predict events.

Some of those “being watched” may have sophisticated enough software experts to look at Hadoop’s underlying methods and set their own programs to block it. In a world in which sophisticated hackers can decode and undermine almost any well-designed system, Hadoop is no exception.

Now that those who know Hadoop is meant to thwart them can begin to cloak themselves, the federal government must take immense measures quickly to can the operations of the software, which it may not be able to do. If it can accomplish the task, the investment to do so likely will be huge.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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